Accounting Policies of Porwal Auto Components Ltd. Company

Mar 31, 2015

(a) Basis of Accounting:

The financial statements have been prepared on the historical cost
convention and in accordance with normally accepted accounting
principles on going concern basis and accounting standards issued by
ICAI following mercantile system of accounting. Accounting policies not
referred to otherwise are consistent with generally accepted accounting
principles.

(b) Fixed Assets and CENVAT credit on capital goods:

Fixed Assets are stated at cost of acquisition or construction (Net of
CENVAT Credit Availed) less accumulated depreciation. Cost comprises
the purchase price and other attributable costs. CENVAT credit availed
but not adjusted against excise duty payment is treated as CENVAT
Credit receivable and shown under "Loans and Advances". Fixed assets on
which CENVAT credit is not availed is shown at full value.

(c) Depreciation:

Depreciation on fixed assets is provided on the basis of estimated
useful life of the assets as per straight-line method at the rates and
in the manner prescribed in Schedule II of the Companies Act, 2013 as
under:- .

Factory Building - 30 Years

Plant and Machinery - 15 Years

Material Handling Equipment - 8 Years

Tools and Patterns - 8 Years

Electrical Installation - 10 Years

Testing Equipments - 10 Years

Auxiliary Equipment - 8 Years

Furniture and Fixture - 15 Years

Office Equipment - 5 Years

Computer - 3 Years

Vehicle - 5 Years

Air Pollution Equipment - 15 Years

Plant and Machinery - 15 Years

Solar Plant - 15 Years

Intangible Asset Over the estimated life

(d) Inventories:

Inventories of raw materials, stock in process, stores and process
material and runner and risers are stated at cost on FIFO basis.
Finished goods are stated at lower of cost or net realizable value.

(e) Turnover:

Turnover is net of excise duty.

(f) Recognition of Income & Expenditure:

These are accounted on accrual basis. The company has obtained Group
Gratuity Insurance policy from LIC of India to cover its Gratuity
liability and is making annual payment of the liability calculated by
them. Provident Fund Cost is accounted as per provisions of the said
Act.

(g) Taxation

Provision for tax (tax expense) is made considering both current and
deferred taxes. Provision for current tax is made at current income tax
rates based on assessable income. Provision for deferred tax is made
based on the tax effect of timing differences resulting from the
recognition of items in the financial statements and in estimating its
current tax provision. Deferred tax assets are recognized if there is
reasonable certainty of realization. The effect of change in tax rates
on deferred taxes is recognized in the Profit and Loss Account in the
period that includes the enactment date.

(h) Provisions for Contingent Liabilities

Provisions in respect of present obligations arising out of past events
are made in the accounts when reliable estimates can be made of the
amount of the obligation. Contingent liabilities are disclosed by way
of not the financial statements after careful evaluation by the
Management of the facts and legal aspects of the matter involved.

Mar 31, 2014

(a) Basis of Accounting :

The financial statements have been prepared on the historical cost
convention and in accordance with normally accepted accounting
principles on going conccern basis and accounting standards issued by
ICAI following mercantile system of accounting. Accounting policies not
referred to otherwise are consistent with generally accepted accounting
principles.

(b) Fixed Assets and CENVAT credit on capital goods :

Fixed Assets are stated at cost of acquisition or construction (Net of
CENVAT Credit Availed) less accumulated depreciation. Cost comprises
the purchase price and other attributable costs. CENVAT credit availed
but not adjusted against excise duty payment is treated as CENVAT
Credit receivable and shown under "Loans and Advances", Fixed assets on
which CENVAT credit is not availed is shown at full value.

(c) Depreciation :

Depreciation on fixed assets is provided on straight-line method at the
rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956. Depreciation on assets purchased/Constructed/sold during the
year has been provided on pro-rata basis. No depreciation is provided
on lease hold land.

Depreciation on selected plant and machinery, material handling, tools
and equipments and auxiliary equipments hitherto provided on straight
line method as specified in Schedule XIV of the Companies Act, 1956.
Depreciation for the year is provided on the balance useful life of ten
to twenty five years of the assets as determined by the approved valuer
on pro-rata basis with reference to date of acquisition.

(d) Inventories :

Inventories of raw materials, stock in process, stores and process
material and runner and risers are stated at cost on FIFO basis.
Finished goods are stated at lower of cost or net realizable value.

(e) Turnover:

Turnover is net of excise duty.

(f) Recognition of Income & Expenditure :

These are accounted on accrual basis. The company has obtained Group
Gratuity Insurance policy from LlC of India to cover its Gratuity
liability and is making annual payment of the liability calculated by
them. Provident Fund Cost is accounted as per provisions of the said
Act.

(g) Taxation

Provision for tax (tax expense) is made considering both current and
deferred taxes. Provision for current tax is made at current income tax
rates based on assessable income. Provision for deferred tax is made
based on the tax effect of timing differences resulting from the
recognition of items in the financial statements and in estimating its
current tax provision. Deferred tax assets are recognized if there is
reasonable certainty of realization. The effect of change in tax rates
on deferred taxes is recognized in the Profit and Loss Account in the
period that includes the enactment date.

(h) Provisions for Contingent Liabilities

Provisions in respect of present obligations arising out of past events
are made in the accounts when reliable estimates can be made of the
amount of the obligation. Contingent liabilities are disclosed by way
of not the financial statements after careful evaluation by the
Management of the facts and legal aspects of the matter involved.

Mar 31, 2013

(a) Basis of Accounting :

The financial statements have been prepared on the historical cost
convention and in accordance with normally accepted accounting
principles on going concern basis and accounting standards issued by
ICAI following mercantile system of accounting. Accounting policies not
referred to otherwise are consistent with generally accepted accounting
principles.

(b) Fixed Assets and CENVAT credit on capital goods :

Fixed Assets are stated at cost of acquisition or construction (Net of
CENVAT Credit Availed) less accumulated depreciation. Cost comprises
the purchase price and other attributable costs. CENVAT credit availed
but not adjusted against excise duty payment is treated as CENVAT
Credit receivable and shown under "Loans and Advances", Fixed assets on
which CENVAT credit is not availed is shown at full value.

(c) Depreciation :

Depreciation on fixed assets is provided on straight-line method at the
rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956. Depreciation on assets purchased/Constructed/sold during the
year has been provided on pro-rata basis. No depreciation is provided
on lease hold land.

Depreciation on selected plant and machinery, material handling, tools
and equipments and auxiliary equipments hitherto provided on straight
line method as specified in Schedule XIV of the Companies Act, 1956.
Depreciation for the year is provided on the balance useful life of ten
to twenty five years of the assets as determined by the approved valuer
on pro-rata basis with reference to date of acquisition.

(d) Inventories :

Inventories of raw materials, stock in process, stores and process
material and runner and risers are stated at cost on FIFO basis.
Finished goods are stated at lower of cost or net realizable value.

(e) Turnover:

Turnover is net of excise duty.

(f) Recognition of Income & Expenditure :

These are accounted on accrual basis. The company has obtained Group
Gratuity Insurance policy from LlC of India to cover its Gratuity
liability and is making annual payment of the liability calculated by
them. Provident Fund Cost is accounted as per provisions of the said
Act.

(g) Deferred Revenue Expenditure

Deferred Revenue Expenditure and public issue expenses are amortized
equally over a period of five years.

(i) Taxation

Provision for tax (tax expense) is made considering both current and
deferred taxes. Provision for current tax is made at current income tax
rates based on assessable income. Provision for deferred tax is made
based on the tax effect of timing differences resulting from the
recognition of items in the financial statements and in estimating its
current tax provision. Deferred tax assets are recognized if there is
reasonable certainty of realization. The effect of change in tax rates
on deferred taxes is recognized in the Profit and Loss Account in the
period that includes the enactment date.

(j) Provisions for Contingent Liabilities

Provisions n respect of present obligations arising out of past events
is made in the accounts when reliable estimates can be made of the
amount of the obligation. Contingent liabilities are disclosed by way
of not the financial statements after careful evaluation by the
Management of the facts and legal aspects of the matter involved.

Mar 31, 2011

(a) Basis of Accounting:

The financial statements have been prepared on the historical cost
convention and in accordance with normally accepted accounting
principles on going concern basis and accounting standards issued by
ICAI following mercantile system of accounting. Accounting policies not
referred to otherwise are consistent with generally accepted accounting
principles.

(b) Fixed Assets and CENVAT credit on capital goods:

Fixed Assets are stated at cost of acquisition or construction (Net of
CENVAT Credit Availed) less accumulated depreciation. Cost comprises
the purchase price and other attributable costs. CENVAT credit availed
but not adjusted against excise duty payment is treated as CENVAT
Credit receivable and shown under "Loans and Advances".

(c) Depreciation:

Depreciation on fixed assets is provided on straight-line method at the
rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956. Depreciation on assets purchased/Constructed/sold during the
year has been provided on pro-rata basis. No depreciation is provided
on leasehold land.

Depreciation on selected plant and machinery, material handling, tools
and equipments and auxiliary equipments hitherto provided on straight
line method as specified in Schedule XIV of the Companies Act, 1956.
Depreciation for the year is provided on the balance useful life of ten
to twenty five years of the assets as determined by the approved value
on pro-rata basis with reference to date of acquisition.

(d) Inventories:

Inventories of raw materials, stock in process, stores and process
material and runner and risers are stated at cost on FIFO basis.
Finished goods are stated at lower of cost or net realizable value.

(e) Turnover:

Turnover includes excise duty recovered.

(f) Recognition of Income & Expenditure:

These are accounted on accrual basis. The company has obtained Group
Gratuity Insurance policy from LIC of India to cover its Gratuity
liability and is making annual payment of the liability calculated by
them. Provident Fund Cost is accounted as per provisions of the said
Act.

(g) Deferred Revenue Expenditure

Deferred Revenue Expenditure and public issue expenses are amortized
equally over a period of five years.

(h) Taxation

Provision for tax (tax expense) is made considering both current and
deferred taxes. Provision for current tax is made at current income tax
rates based on assessable income. Provision for deferred tax is made
based on the tax effect of timing differences resulting from the
recognition of items in the financial statements and in estimating its
current tax provision. Deferred tax assets are recognized if there is
reasonable certainty of realization. The effect of change in tax rates
on deferred taxes is recognized in the Profit and Loss Account in the
period that includes the enactment date.

(i) Provisions for Contingent Liabilities

Provisions n respect of present obligations arising out of past events
are made in the accounts when reliable estimates can be made of the
amount of the obligation. Contingent liabilities are disclosed by way
of not the financial statements after careful evaluation by the
Management of the facts and legal aspects of the matter involved.

Mar 31, 2010

(a) Basis of Accounting:

The financial statements have been prepared on the historical cost
convention and in accordance with normally accepted accounting
principles on going concern basis and accounting standards issued by
ICAI following mercantile system of accounting. Accounting policies not
referred to otherwise are consistent with generally accepted accounting
principles.

(b) Fixed Assets and CENVAT credit on capital goods:

Rxed Assets are stated at cost of acquisition or construction (Net of
CENVAT Credit Availed) less accumulated depreciation. Cost comprises
the purchase price and other attributable costs. CENVAT credit availed
but not adjusted against excise duty payment is treated as CENVAT
Credit receivable and shown under "Loans and Advances".

(c) Depreciation:

Depreciation on fixed assets is provided on straight-line method at the
rates and in the manner prescribed in Schedule XIV of the Companies
Act, 1956. Depreciation on assets purchased/Constructed/sold during the
year has been provided on pro-rata basis. No depreciation is provided
on leasehold land.

Depreciation on selected plant and machinery, material handling, tools
and equipments and auxiliary equipments hitherto provided on straight
line method as specified in Schedule XIV of the Companies Act, 1956.
Depreciation for the year is provided on the balance useful life of ten
to twenty five years of the assets as determined by the approved valuer
on pro-rata basis with reference to date of acquisition.

(d) Inventories:

Inventories of raw materials, stock in process, stores and process
material and runner and risers are stated at cost on FIFO basis.
Finished goods are stated at lower of cost or net realizable value.

(e) Turnover:

Turnover includes excise duty recovered.

(f) Recognition of Income & Expenditure:

These are accounted on accrual basis . The company has obtained Group
Gratuity Insurance policy from LIC of India to cover its Gratuity
liability and is making annual payment of the liability calculated by
them. Provident Fund Cost is accounted as per provisions of the said
Act.

(g) Deferred Revenue Expenditure

Deferred Revenue Expenditure and public issue expenses are amortized
equally over a period of five years.

(i) Taxation

Provision for tax (tax expense) is made considering both current and
deferred taxes. Provision for current tax is made at current income tax
rates based on assessable income. Provision for deferred tax is made
based on the tax effect of timing differences resulting from the
recognition of items in the financial statements and in estimating its
current tax provision. Deferred tax assets are recognized if there is
reasonable certainty of realization. The effect of change in tax rates
on deferred taxes is recognized in the Profit and Loss Account in the
period that includes the enactment date.

(j) Provisions for Contingent Liabilities

Provisions n respect of present obligations arising out of past events
are made in the accounts when reliable estimates can be made of the
amount of the obligation. Contingent liabilities are disclosed by way
of not the financial statements after careful evaluation by the
Management of the facts and legal aspects of the matter involved.